UAE leaving OPEC, effective May 1, 2026, deals one of the biggest blows the oil cartel has taken in decades. The announcement on Tuesday landed right in the middle of the US-Israel war on Iran, a conflict that has already caused a historic energy shock and throttled shipments through the Strait of Hormuz. Oil prices, which reached as high as $119.50 a barrel since the war started, climbed another 3% to around $111 on the day of the news. With the UAE also exiting OPEC+, the group loses its third-largest producer at a moment when it can least afford it.

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UAE Energy MinisterSuhail Al Mazroueiconfirmed the UAE made this decision unilaterally, without consulting Saudi Arabia or any other member of what is OPEC oil cartel. He described it as a clean policy call, and also made clear it had nothing to do with internal politics.

UAE Energy Minister Suhail Al Mazrouei told CNBC:

“Our exit at this time is the right time for it, because it will have a minimum impact on the price and it will have a minimum impact on our friends at OPEC and OPEC+.”

Dr. Sultan Al Jaber, managing director and group CEO of Abu Dhabi National Oil Company (ADNOC), also weighed in. He stated:

“This decision is in line with its long-term energy strategy, its true production capability and its national interest, as well as global energy market stability.”

An energy industry source familiar with the decision added:

“This decision is good for consumers and good for the world. Following the Hormuz crisis, globally, the spare capacity is at a historical low and very tight. The UAE will gradually increase production to supply global markets, once freedom of navigation is restored in the Strait of Hormuz.”

The UAE leaving OPEC oil prices picture gets more complex because of the ongoing Strait of Hormuz oil disruption, which already cut OPEC output by 27% to 20.79 million barrels per day in March. The UAE also saw its own production drop 44% after the Hormuz closure, falling from 3.4 million bpd to just 1.9 million bpd.

Source: Watcher Guru